Why Product Innovation is Key to Success

Technology has had a dramatic effect on how businesses operate. In the following post we look at how technology is driving product innovation and how customer demands are shaping businesses today….

The Internet has made it much easier for prospective customers to compare products and services, find reviews and company background information before making a purchase. On the one hand this makes it more difficult for businesses to sell directly as customers are already half way through the buying cycle when they engage with a company. On the other hand it also provides businesses with the opportunity to mould their brand through the information, content and communities they build online. Either way, it means those who engage with their business are more qualified leads.

The evolution of technology has also increased competition. The tools to help businesses monitor customer demands and evolve their product offering in-line with what customers want are more accessible than ever before. It’s therefore imperative to be innovative and creative in order to maintain the attention of your customers and to continue providing value.

As explained on Computer Weekly, “Businesses that are seemingly well established are facing new threats at an accelerating rate from previously unencountered opposition using technology.” The evolution of technology and development of big data is enabling businesses to obtain valuable insights into their customers and competition.

Customer Demands
Customer demands are constantly evolving. By using social listening tools you are able to find out what your customers and prospects want, you can also monitor how and where people find you, which can help you develop your product and service offering. Studies show that customers want and expect businesses to be innovative, Vision Critical explain, “A 2016 study shows that 63 percent of customers like it when manufacturers offer new products.” What’s more it’s been found that customers are willing to pay more for innovative products. One study found 83% of customers would pay more for innovation in electronics.

Customers expect a continuous stream of enhanced products and services to improve their way of life. One type of business which is heavily influenced by customer demands, new laws, regulations and technology, is the electronic cigarette industry. To ensure they meet demands they continue to develop new products, the Aspire Cleito Tank from AspireEcigUK.co.uk for example has a revolutionary new coil system and top-fill design, which is critical to the evolving industry to improve standards and meet new regulations. This is just one way technology is driving changes and improving customer experiences..

Acquisition and Retention
PwC found 93% of business executives believe “organic growth through innovation will drive the greater proportion of their revenue growth.” Acquiring customers is important, but retaining them is essential since 80% of a business’ future profits will come from 20% of their existing customers. This means they must improve their product and service offering in order to continue meeting customer demands. It’s important to listen to what customers want, taking the time to get to know them and obtaining feedback. What’s more, as Chris Ducker explains , “If you’re running an online business, creating mobile apps or selling informational products via your blog, being seen as an innovative sort will help you immensely, of course.”

All businesses must remain up to date with changes in technology and consumer behaviour, either by creating innovative solutions or improving their existing products to drive growth and profitability. As explained on innocellence.com, “Developing an innovative product that’s unique and superior to what the competition offers can lead to profit growth. In fact, more than 90% of the world’s 100 most innovative companies have experienced positive sales growth due to innovation, according to a recent Forbes report.”

Product and service innovation is vital for businesses to remain profitable. It is the only way for them evolve their brand, to retain customers and to beat the competition.

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